Panostaja Oyj Stock Exchange Bulletin May 19, 2015 at 9:00am
Panostaja’s Digital Printing Services segment strengthened
Grano and Multiprint merge
The shareholders of Panostaja’s subsidiary Digiprint Finland Oy and Multiprint Group Oy have signed an agreement to merge Digiprint Finland and Multiprint Group. Digiprint Finland is Grano Oy’s parent company. The net sales of the merged company will increase to some MEUR 90 and the number of personnel to over 800.
In the arrangement, the value of the share capital of Digiprint Finland Oy is MEUR 49.1 and that of Multiprint Group Oy MEUR 25.9. Panostaja will be the majority owner of the merged company with an over 50 per cent share of ownership, with Turun Metsänkävijät ry’s share of ownership being some 16 per cent and the remaining ownership mainly dividing between the executive management of the companies. Within the Panostaja Group, the arrangement will have no impact on profit/loss, because it will keep a controlling interest. The intention is to conclude the arrangement during summer 2015.
Upon the execution of the arrangement, Multiprint Group Managing Director Jaakko Hirvonen will become Managing Director of the new entity. Digiprint Finland Managing Director Heimo Viinanen will become a member of the Board of Directors of the company and he will support the management to implement the integration.
The merger of Grano and Multiprint creates on the market a company that has efficient production and high technical expertise, as well as a service network that operates in a customer-centered way and is geographically comprehensive. This forms a basis for excellent possibilities to continue developing the entire sector. The merger agreed now increases the opportunities to invest in sales, customer service and the development of innovative solutions.
Grano and Multiprint have been pioneers in their field, and their offerings and customer coverage are highly complementary. There are only a few overlapping functions, and they are mainly located in the Helsinki Metropolitan Area. The focus of Grano’s service network has been Central and Eastern Finland in addition to the Helsinki Metropolitan Area, whilst Multiprint has concentrated on Southern and Western Finland. After the merger, the company will have offices in 23 cities covering Finland from Oulu to Helsinki. Both companies are professionals in digital printing and modern offset printing. Grano’s particular strong points are electronic material management systems and marketing solutions, and those of Multiprint include comprehensive service solutions and 3D printing service.
As the majority shareholder, Panostaja's objective is to make the companies it owns even stronger and thus to increase their value. Panostaja’s subsidiary since 2008, Grano has succeeded very well despite the general challenges facing the field, and has grown profitably. Part of the growth has come by developing its range of services and Grano has also been active in corporate acquisitions. Through continuous renewal and several mergers and acquisitions, Multiprint has also grown from Karhukopio founded in 1962 by a scout troop from Turku into one of the sector’s most significant and profitable service companies.
In addition to Panostaja, which will remain the majority owner, the share capital will mainly be divided up between the executive management of Grano and Multiprint and Turun Metsänkävijät ry. The transaction requires the approval of the meeting of Turun Metsänkävijät ry that owns Multiprint.
”Grano is the largest of Panostaja’s subsidiaries, so the deal now agreed is significant for us. The merger will expand the geographical coverage of Grano’s network, and increase resources and expertise for the development of services. In future, it will be possible to achieve growth through innovative services and corporate acquisitions in Finland, as well as by expanding outside the country’s borders. In this case, the implementation of the deal was quite straightforward, because the negotiators had strong trust in each other and a shared view of the future,” says Panostaja’s CEO Juha Sarsama.
”The merger is a leap into a new stage of development. The foundations are good because both Multiprint and Grano are in excellent shape in all respects, and they are passionate about work and the sector. Both companies have also grown through several corporate acquisitions. The merger will create a company that is the absolute leader in its field,” says Multiprint’s Chairman of the Board Kari Heinistö.
Panostaja’s result management
At this point, Panostaja does not specify its result management, since the technical manner of the merger and the final schedule of the arrangement remain open.
The previous result management on March 4, 2015:
Panostaja keeps its result management issued on February 27, 2015 unaltered. The Group’s net sales in the 2015 financial period are expected to be greater than in the 2014 financial period (MEUR 154.8). The Group’s EBIT is expected to be on the same level as in the 2014 financial period (MEUR 10.2).
Multiprint Group Oy’s net sales and EBIT in the financial periods of January 1, 2014−December 31, 2014 and January 1, 2013−December 31, 2013 were as follows (FAS):
(EUR 1,000)
|
Jan 1, 2014−Dec 31, 2014 |
Jan 1, 2013−Dec 31, 2013 | |
|
Net sales |
33,870 | 31,955 |
|
EBIT |
3,022 | 1,449 |
The balance sheets in the financial statements on December 31, 2014 and December 31, 2013 were as follows:
(EUR 1,000)
|
Dec 31, 2014 |
Dec 31, 2013 | |
|
Permanent assets |
14,136 | 12,627 |
|
Stocks |
1,107 | 964 |
|
Receivables and Liquid assets |
8,003 | 6,554 |
| Total | 23,246 | 20,145 |
|
Equity |
11,999 | 10,542 |
|
Liabilities |
11,247 | 9,604 |
|
Total |
23,246 | 20,145 |
Further information:
Panostaja Oyj, CEO Juha Sarsama, tel. +358 40 774 2099
Multiprint Group Oy, Chairman of the Board Kari Heinistö, +358 400 530 820
Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories. Panostaja operates in nine business areas and, as a result of the Multiprint merger, Panostaja Group employs some 1,500 staff. Panostaja’s share (PNA1V) is quoted on the NASDAQ OMX Helsinki Stock Exchange. In the 2014 financial period, the Group’s net sales totaled MEUR 154.8.
Grano provides marketing communications and printing services and is the market leader in its field in Finland. The company’s services are available nationally at 12 different branches from Helsinki to Joensuu. The name ‘Grano’ was introduced in 2014, when Kopijyvä and DMP merged. Grano is Digiprint Finland Oy’s subsidiary, wholly owned by Digiprint Finland Oy. Panostaja’s shareholding in Digiprint Finland Oy is 65% and that of Managing Director Heimo Viinanen and the executive management is 35%. In 2014, Grano had net sales of MEUR 57.8 and employed 497 staff.
Multiprint is a company offering services in printing and digitizing. Multiprint’s head office is located in Turku and the company provides services at 29 branches in 16 Finnish cities. Multiprint is owned by Turun Metsänkävijät ry together with executive management. In 2014, Multiprint had nhttp://www.multiprint.fiet sales of MEUR 33.9 and it employed 335 staff.